Challenges Managers Experience in a Global Environment

Studies on Challenges Managers Experience in a Global Environment1
Studies on Challenges Managers Experience in a Global Environment
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Studies on Challenges Managers Experience in a Global Environment2
Studies on Challenges Managers Experience in a Global Environment
Globalization has led to the increase in international trade that offers so many
opportunities. However, doing business in the global environment comes with several challenges
that managers have to deal with in the daily operation of their organization. The managers have
to possess a global intellectual capital, which is having good knowledge of the global industry,
for them to overcome these challenges (Laureate, 2013). This essay about challenges managers
face in a global environment we look into the Starbucks Corporation as our case study. This
organization is the global leading retailer, marketer and roaster of specialty coffee. It is operating
in nearly 35 countries including the United States and therefore its managers should be facing the
challenges that come with operating in a global environment.
When it comes to doing business in global environments, challenges such as
environmental and ethical concerns, hasty adjustments in technological platforms and the issues
that arise with managing a diverse workforce having religious, social and cultural differences and
language and communication barriers (Hurn, 2013). The managers' ability to respond to these
challenges greatly determines the success or failure of any international organization today.
Market liberalization opens very many trade opportunities such as increased capital flows,
expansion into new markets and direct foreign investments. The Starbucks corporation, for
examples, it is operating in Japan, China, United Kingdom, United States and many other
countries in the world. These countries have distinctive cultures, religion and languages and the
organization has the challenge of incorporating all these when it comes to marketing their
products and also managing their workforce.
The managers have to understand the diversities of their workforce and align everyone in
the direction of attaining the goals of the organization. The workforce the managers are working

Studies on Challenges Managers Experience in a Global Environment3
with is characterized by diverse backgrounds, viewpoints, skills and experience. This is a
challenge the managers have to understand but they can use the diverse workforce to increase
their competitive advantage since studies show that such a workforce fosters innovation (Meyer
et al, 2007). The culture, diversity, competitive advantages, IT advances and many challenges
should be addressed for any international organization to thrive in a global environment.
Supply chain managers also have to deal with several challenges brought up by
globalization such as decreasing product lifecycle and the increasing product variety. In
Starbucks Corporation, for instance, managers have to recognize that there are so many local
companies offering products that are similar to theirs and therefore they have to ensure they
maintain their competitive advantage. Ethical and environmental concerns also vary from one
country to another and therefore the managers should know how to appropriately deal with this
challenge. The risks of the supply chain that are caused by political and economic issues in
different countries also have to be managed effectively to ensure business success.
In conclusion, globalization has so many benefits and opportunities but it also comes with
challenges that managers have to solve. Managers have to use their global intellectual to
appropriately deal with the challenges and ensure success in business.
Bibliography
Chopra, S. and Meindl, P. (2013) Supply chain management strategy, planning and operation.
5th ed. New Jersey: Pearson Education, Inc.
Hurn, B.J. (2013) ‘Response of managers to the challenges of globalization’, Industrial and‘’
Commercial Training, 45(6), pp. 336-342.
Laureate Custom (2013) Business management and analysis. New York: McGraw-Hill
Meyer, E. Ashleigh, M. Jones, G.R. and George, J.M. (2007) Contemporary Management:
European Edition. New York: McGraw-Hill.